Reinsurance News

Heritage sees $48.2m loss in Q3

9th November 2022 - Author: Pete Carvill

Heritage has reported its Q3 2022 results, saying that it saw a net loss in the period of $48.2m, compared to one of $16.4m in the same three months in 2021.

Heritage Insurance logoDespite the losses, the firm still said that its gross written premiums had gone up 11.1% between Q3 2021 and Q3 2022, rising from $274.2m to $304.5m between the two periods. Gross premiums, it added, went up 4.6% in this time, too. Meanwhile, net earned premiums were down 1.7%.

It also reported that net current accident year weather losses amounted to $63.8m, up 24.2% from $51.4m in the prior year quarter. Current accident year catastrophe weather losses were $40m up 150.5% from $16m in the prior year quarter. Current accident year other weather losses were $23.8m, down 32.8% from $35.4m in the prior year quarter.

Ernie Garateix, CEO of Heritage, said: “Hurricane Ian made landfall in Florida on September 28th. Our highest priority is our policyholders and all those who continue to be affected by Hurricane Ian remain in our thoughts. We are committed to fair and timely claim handling for our customers.”

He added: “At the same time, we are focused on managing exposure and achieving rate adequacy throughout the book of business. We continue to de-risk products or geographies which are not producing appropriate margins, which includes being more selective on both new and renewal business. While I am disappointed with the loss in the quarter, the strategies outlined below are having a positive impact, as demonstrated by the Supplemental Information table included in this earnings release, and I expect that improvement to continue and be reflected in future quarters.”

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These figures come only a few weeks after the firm said it expected to see $40m of net retained losses from Hurricane Ian, leading it to tap into its reinsurance.

Back then, the firm said that that $40m was inclusive of reinstatement premiums and participation by its captive reinsurer, Osprey Re.

It added that ultimate gross losses continue to be evaluated but are expected to fall within layer 2 of its catastrophe excess of loss program which begins at $140m and exhausts at $960m.

By October, Heritage said it had received close to 12,000 claims associated with Hurricane Ian.

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